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Situational Analysis: Snuggie infomercial began airing on U.S television in October 2008. Since its launch, social networks became a massive conduit of free advertisement which created awareness of this specific product. As you can see from exhibit 1, Getsnuggie.com increased traffic in approximately 169,000 unique visitors (338% growth) from October to November. We have seen that few weeks after the TV infomercial was lunched, the product became viral via social media channels such as YouTube which we assume is the reason for this growth in visits. Furthermore, Slanket.com increased in unique visitors in 400% which indicates that with more consumer awareness created by social media on the product Snuggie, the traffic of Slanket.com increased.
With this taken into consideration, Slanket should consider the strategy of participating on social media to enforce the visits in Slanket.com by creating awareness of their product. As you can see from exhibit 2 Slanket.com has a profit per-unit of $28.00 compared to QVC which creates $8.00 per unit sold. Slanket should focus on its most profitable channel to increase its visitors in order to increase sales. Sales = Visits x Conversion Rate x Average ticket Price
By using the sales formula we can calculate the conversion rate of slanket.com and furthermore we can calculate revenues with the increase in visits on the web page that we can find. The total sales of Slanket.com are $1.14 million (see exhibit 2) and we need to assume that the average price is $38.00. The web page has an approximate number of unique visits of 88,500 (until November 2008) (see exhibit 1). If we replace the data on the formula we get a conversion rate of 0.34. Using this data we can assume that if Slanket.com has a growth in visits similar to the percent increase it faced in period of September to October, the web

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